Direct labor 5.8 1.6 Variable manufacturing overhead Fixed manufacturing 3.6 overhead Unit product cost 19.8 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 30% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minute on the machine that is the company's current constraint. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component? O a. $17.28 O b. $19.80 O c. $19.88 O d. $22.40 Clear my choice Next page Direct labor 5.8 1.6 Variable manufacturing overhead Fixed manufacturing 3.6 overhead Unit product cost 19.8 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 30% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minute on the machine that is the company's current constraint. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component? O a. $17.28 O b. $19.80 O c. $19.88 O d. $22.40 Clear my choice Next page